One of the market’s oldest inflation hedges appears to be in the early stages of a comeback: gold. As a decade of extraordinary policy unwinds at the Federal Reserve, the yellow metal may appear as an attractive option for investors looking to protect themselves from the eroding effects of inflation.
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Gold could hit levels last seen in 2013 if the dollar extends its slide and equity markets reverse. Bullion at $1,400 an ounce is “achievable” in the next two months, Stephen Innes, head of trading for Asia Pacific at brokerage Oanda Corp., said in an interview Thursday. The Bloomberg Dollar Spot Index plunged to the lowest since 2014 after Treasury Secretary Steven Mnuchin endorsed the currency’s drop at the World Economic Forum in Davos.
Gold futures gained Tuesday to mark the highest finish since early September, even as a closely watched U.S. dollar index tried to end its streak of declines. “The near-term trend remains higher for gold, and that is in line with inflation taking hold,” said analysts at the Sevens Report. “That, in turn, is weighing on real interest rates, which is bullish for gold.”
Gold hit its highest since late September on Tuesday, extending a year-end rally that saw the metal rise 4.4 percent in the last three weeks of 2017, as a further retreat in the dollar drove prices above $1,310 an ounce. Palladium prices meanwhile bounced to a new 17-year high, within $5 of their all-time peak, as tightening emissions controls and a swing away from diesel cars in Europe fueled fears of a shortage of the…
Remember gold? It seems like only six years ago the shiny metal was flavor of the month, hitting a record $1,900 a troy ounce while its backers prophesied the end of the fiat money system.
Gold held near a two-month low on Wednesday, under pressure from an advancing dollar ahead of a vote on the U.S. tax reform plan, but a potential government shutdown lent support to prices. Spot gold had inched 0.1 percent lower to $1,264.260 an ounce by 14:20 GMT after it hit its weakest since Oct. 6 in the previous session.
U.S. Fed, Bank of England, Bank of Japan meet this week Trump to announce Fed chair, with Powell tipped for post Gold steadied on Monday as traders stayed on the sidelines before this week’s central bank meetings and policy news, including President Donald Trump’s expected announcement of the next Federal Reserve chair. The U.S. central bank kicks off a two-day policy meeting on Tuesday, while the Bank of Japan and Bank of England also meet…
India’s Diwali festival, which starts October 18, 2017, and lasts five days, is approaching. It is customary for people to buy gold at this time for the upcoming festival and wedding seasons, and populous India is one of the world’s largest consumers of gold. Gold is projected to regain ground at this time, recovering from September lows. According to NDTV, India’s gold imports: “… recorded a threefold jump to $15.24 billion during the April–August period…
President Donald Trump has thrown gold’s true believers a lifeline. Trump’s inflammatory statements and tweets on some of the most sensitive areas of foreign policy — notably North Korea and Iran — have raised risk dramatically on the international stage. And by that I mean the risk of war, even nuclear war.